#1Locally Integrated Globally Connected tim kerja konektivitas kp3ei Brief Perspective on National and International Shipping Network in Indonesia Connectivity Working Group Secretariat National Development Planning Agency (BAPPENAS) 23-25 July 2013#2Locally Integrated Globally Connected Based on the report of the World Economic Forum (WEF) of the latest Global Competitiveness Report (2012- 2013), Indonesian port service quality is ranked 104. Still lags behind Singapore, Malaysia, China and India. Indonesia Competitiveness 44 (2010-2011) 46 (2011-2012) Indonesia Competitiveness Country Overall Infrastructure Roads Railroad Port Air Transport Singapore 2 5 2 1 Malaysia 25 27 17 21 24 China 29 39 65 56 33 Thailand 38 54 22 59 70 Indonesia 78 90 51 104 89 India 59 86 27 80 68 Philippines 65 87 94 120 112 Vietnam 75 120 68 113 94 Bangladesh 118 113 73 121 120 Infrastructure Competitiveness 78 82 (2012-2013) (2011-2012) 50 (2012-2013) 90 (2010-2011) Port Competitiveness 95 (2009-2010) 103 (2011-2012) 104 (2012-2013#3Locally Integrated Globally Connected Origin - Destination for Freight Transport Goods Transportation ✓ Domestic good movement still dominated by road modes ✓ International good movement highly dependent in sea modes ✓ Highly concentrated goods movements in Java and Sumatera Passenger Movement ✓ Most sea movements are long and medium distance except between North Sulawesi and Maluku. ✓ Maluku is now the busiest sea movement in Indonesia. DISTRIBUTION OF INDONESIA POPULATION Total Population Indonesia 2010: 237.641.326 Kalimantan Sulawesi 13.787.831 (5,80%) Papua 3.593.803 (1,51%) 17.371.782 (7,31%) Sumatera 50.630.931 (21,31%) Jawa 136.610.590 (57,49%) Maluku Islands 2.571.593 (1,08%) Bali 3.890.757 (1,64%) Nusa Tenggara Islands 16.965.553 (3,86%)#4Locally Integrated Globally Connected OD for Freight Transport Origin - Destination for Freight Transport Characteristics of transport demand in Indonesia OD for Freight Transport > 50.000 ton/day OD for Freight Transport (20.000-50.000) ton/day 1018#5Sabang Locally Integrated Globally Connected Indonesian Main Ports by Economic Corridor Belawan Tua Pejat Sekupang Dumai Batu Ampar Kabil Teluk Bayur Lobam Tg Balai Karimun Pontianak Palembang Pantoloan- Balikpapan Mekar Putih Sampit Banjarmasin Panjang Banten Makassar Tanjung Priok Tanjung Emas Tanjung Perak Tg. Intan Benoa Tenau Bitung Ternate Sorong Jayapura Ambon Merauke#6000's tons Locally Integrated Globally Connected Indonesian Port Traffic by Trade Flow and Cargo Type 2009 (000's ton) 600,000 500,000 400,000 300,000 200,000 100,000 General Cargo Container Dry Bulk Liquid Buk Loading 55,430 13,610 123,771 19,675 Unloading 55,430 13,613 123,743 19,675 Export 14,212 30,342 303. 1 94,769 Import 18,628 30,658 9,7 41,954#7| Locally Integrated Globally Connected Indonesian Port Traffic by Trade Flow and Cargo Type and Principal Commodity, 2009 (000's tons) Foreign Trade Domestic Trade Type of cargo Imports Exports Subtotal Unloading Loading Subtotal Total General Cargo 18,628 14,212 32,840 55,430 55,430 110,859 143,699 Continer 30,658 30,342 61,000 13.613 13,610 27,223 88,222 Dry Bulk 9,719 Cement Coal 685 303,133 144 278,618 312,852 144 279,303 123,743 7.459 69,674 Iron Ore 1,862 8,669 10,531 46 Fertilizer 3,360 1,802 5,162 15,331 123,771 247,514 560,366 7,483 14.941 15,085 69,674 139,349 46 15,334 418,652 91 10,623 30,665 35,828 Grain 3,469 363 3,832 1,172 1,172 2,343 6,175 Other Dry Bulk 343 13,537 13,879 30,062 30,062 60,124 74,003 Liquid Bulk 41,954 94,769 136,723 19,675 Petroleum & Products CPO 31,801 59,309 91,110 192 269 Other Liquid Bulk 9.884 22,169 13,291 22,438 23,175 19.243 240 19,675 192 19,243 240 39,349 176,072 385 91,495 38,485 60,923 479 23,654 Tobl 100.958 442,457 543,415 212,460 212,485 424,946 968,361#8Passenger (millions) Locally Integrated Globally Connected Number of Ships Passenger at Commercial and Non Commercial Sea Port, Indonesia 2011 (Millions) in Indonesia 1995 25,0 20,0 15,0 10,0 5,0 Embarkation Debarkation 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year#91 LO Units of Vessel 7 6 Locally Integrated Globally Connected 220 200 180 160 140 120 100 80 60 40 20 0 Composition of Indonesian Flagged Cargo Vessels by Age Tanker □ Bulker Container General Cargo 11 13 15 17 Age 19 21 23 25 27 29 31 33 35 37 39 41 43 45]#10Locally Integrated Globally Connected Growth of National Fleet Cargo Share After Cabotage Principle 14.000 12.000 10.000 8.000 400 359.67 350.93 350 CARGO (Billion Ton) 316.48 303.1 300 258.36 250 192.76 200 148.74 150 12.171 100 79.21 50.12 50 28 5.9 3.77 4.09 1.27 +101%) 0 DFC 2007 DEC 2008 DEC 2009 DEC 2010 DEC 2011 DEC. 2012 FFB 2013 6.041 8.000 Domestic Cargo Foreign Cargo 4.000 Cargo 2.000 No DEC 2007 DEC 2008 DEC 2009 DEC 2010 DEC 2011 DEC 2012 (Billion Ton) 0 Domestic 148.74 192.76 258.36 303.1 316.48 1 March 31, 2005 May 31, 2013 (%) 65.20% 79.40% 90.20% 98.10% 98.80% 350.93 98.85% Foreign 79.21 50.12 28 5.9 3.77 4.09 2 (%) 34.80% 20.60% 9.80% 1.90% 1.20% 1.15% Total 227.95 242.88 286.36 309.00 320.25 355.02#11Locally Integrated Globally Connected Government Support#12Locally Integrated Globally Connected Large Number of Islands Indonesian Cabotage Principle LAW 17/2008; PP 22/2011; PM 48/2011 Foreign Vessel Dependancy on domestic shipping and sea transportation THE ACTIVITIES OF TRANSPORT PASSENGERS AND/OR GOODS IN DOMESTIC SEA TRANSPORTATION Oil And Gas Survey Drilling Offshore Construction Supporting Offshore Operations Dredging Salvage and Underwater Work Policy reforms Presidential Instruction No. 5/2005 National Shipping Industry Empowerment MUST USE INDONESIAN FLAG SHIP After May 7th 2011 when Law No. 17/2008 be in effect, usage of foreign vessels were prohibited. Foreign Vessels can be used after the date of 7 May 2011 after having permission from Minister for Transportation#13Locally Integrated Globally Connected Large Number of Islands Foreign Vessel Dependancy on domestic shipping and sea transportation Policy reforms Presidential Instruction No. 5/2005 National Shipping Industry Empowerment Indonesian Cabotage Principle Growth of 14.000 12.171 National Fleet 12.000 After Cabotage 10.000 Principle 8.000 Implementation 6.041 6.000 4.000 2.000 0 March 31, 2005 May 31, 2013 Growth Of 400 Domestic Cargo National Cargo 350 Foreign Cargo Share (Dec 2007 Feb 2013) 300 250 192,76 200 148,74 150 359,67 350,93 316,48 303,10 258,36 +101% g 100 79,21 50,12 50 28,00 5,90 3,77 4,09 1,27 0 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Feb 2013#14Locally Integrated Globally Connected Strengthening national connectivity that considers regional and global geostrategic position will be one of the main fokus of Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) implementation MP3EI Phase 1 2011-2012 - Debottlenecking (Regulation and Physical Development) - Showcase of Region/ Strategic Project Phase 2 2013-2014 - Development of new connectivity to support corridor/Special Economic Zone - Refocusing RPJMN Program to support MP3EI 2010-2014 Phase 3 2015-2025 Projects for Long Term National Connectivity toward adequate access, equitable, afford able and safe#15Locally Integrated Globally Connected MP3EI Inter-island connectivity: needs to be regionally differentiated Corridor 1 ось Ink-spot approach (appropriate for sparsely populated areas) Fishbone approach (appropriate for high density population areas) Mostly fishbone on Java & Sumatra, ink-spots in Eastern Indonesia SLOC MALACA Asia Corridor 2 Indonesia's International Gate Europe Corridor 3 America Kuala Tanjung ALKI-I Makasar ALKI-II ALKI-III Bitung ALKI-III C ALKI-III B GLOBAL CONNECTIVITY Legend: Pusat Distribusi Provinsi Konektivitas: By sea/ by rail By sea/ by rail by land By land/ by rail/ by sea Pusat Distribusi Nasional Sea Lane of Communication (SLOC) and ALKI . Pelabuhan Primer Short Sea Shipping Jalur Laut Nasional Primer Connectivity within the centers of economic growth in the corridor and between the centers. of economic growth with its hinterland, including including the non-corridor areas INTER-CORRIDOR CONNECTIVITY LOCAL CONNECTIVITY Growth Centers Connectivity within Corridors NATIONAL CONNECTIVITY GLOBAL CONNECTIVITY Sector Locus Jalur Laut Nasional Sekunder Jalur Utama Darat (Jalan dan/atau KA) 量 Pelabuhan Utama Internasional Alternatif Pelabuhan Hub Internasional Bandar Udara Internasional#16Locally Integrated Globally Connected Phuket THAILAND PHILIPPINES Zamboanga City DavaoCity Gen. Santos Tawau Tarakan Penang BRUNEI DARUSSALAM Muara MALAYSIA Belawan Dumai Malacca Johor Sinte INDONESIA 250 50 Belawan 1000 km Phuket Penang Bitung Pantoloan 250 km 8 MPAC Implementation Brooke's Point Bitung General Santos - Davao Route - Labuan Muara MALAYSIA BRUNEI DARUSSALAM INDONESIA Belawan - Penang - Phuket Route General Santos O Dumai Bitung Dumai - Malacca Route Malacca#17Locally Integrated Globally Connected Opportunities#18Locally Integrated Globally Connected Port Traffic Forecast by Economic Development Corridor, 2030 (000 tons) General Cargo Container Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Petrolium & Product CPO Other Liquid Bulk Legend: 500.000 250,000#19Locally Integrated Globally Connected BELAWAN TANJUNG PRIOK 2011: 1.28 Mio TEUS 2030: 4.81 Mio TEUS 2011: 5.93 Mio TEUS 2030: 21.24 Mio TEUS BATAM . PEKANBARU Indonesian Ports - Container Traffic Forecast TANJUNG PERAK 2011: 2.62 Mio TEUS 2030: 9.44 Mio TEUS BALIKPAPAN PONTIANAK TELUK BAYUR PALEMBANG PANJANG TANJUNG EMAS 2011: 0.43 Mio TEUS 2030: 3.11 Mio TEUS Indonesian Ports Year 2012 1,122 Mio Tons Cargo Container 12.6 Mio TEUS (11.3%) 85% Containers handled in 5 Ports BITUNG MAKASSAR 2011: 0.46 Mio TEUS 2030: 2.47 Mio TEUS BANJARMASIN 2009 2015 2020 2030 SORONG JAYAPURA#20Locally Integrated Globally Connected Final Notes#21Locally Integrated Globally Connected Final Notes Indonesia has a very strategic position in global and regional shipping network. It has a direct access to the world's largest market since it is passed by one of the most SLOC, i.e. The Malaccan Strait and 3 SLOCS in Indonesia. There are two main problems in port development in Indonesia. First, Indonesia's main ports are facing overcapacity which causes inefficiencies. Second, Indonesia also does not have. trans-shipment port capable of accomodating large trans-oceanic vessels. Huge investment is therefore needed, as well as to strengthen the existing 32 strategic ports which are in poor condition at the moment. Indonesia still needs to strengthen its shipping because Indonesian-flagged vessels are typically older that vessels operated by foreign shipping companies.. Government of Indonesia is currently implementing Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) to strengthen national connectivity that considers regional and global geostrategic position. In addition to strengthening national connectivity through MP3EI, Government of Indonesia is in the process of developing ASEAN RO-RO Shipping network in coordination with Malaysia. and Phillipines to strengthen inter-island connectivity in ASEAN. Indonesia can benefit from its strategic cooperation with Australia, as well as New Zealand, and other Southwest Pacific islands states. Government of Indonesia is committed to maintain the momentum of investment friendly environment and is exploring all options in encouraging investment in infrastructure, especially port development as backbone of national economic development corridor